RBI lifts ban on M&M Finance for outsourcing recovery, repossession agents

The Reserve Bank of India (RBI) has lifted the ban on Mahindra & Mahindra Finance for outsourcing recovery and repossession agents with immediate effect, the non-banking finance company (NBFC) informed the exchanges.

On September 22, the regulator barred Mahindra Finance from carrying out any recovery or repossession activity through outsourced agents, after reports that a woman was crushed to death in Jharkhand’s Hazaribagh district, while she was trying to stop a loan recovery agent working on the company’s behalf from seizing her father’s tractor over loan dues.

Mahindra Finance said the ban was lifted after the company assured the RBI